That does look like tight kerning, but kinda appropriate and consistent.
The real crime here is using Arial on a building. It's like architects have 3 fonts, tempest, arial, and times new roman (that they don't know about or how to change to). They always just draw Arial on the front of the building, and figure they'll dress it up as the customer requests... and the customer can't even imagine their sign will look like that, so they don't bring it up, it must be a place holder. Then you show up with a 4th grader's all caps homework and make this nice new wall look like garbage. Even times is a better selection most days!
Last month I got a file from an architect for a project board. The lettering was a vector object, one bmp, and a jpg of the logo. But the file was huge, and there were 45 bmp in the file. Turns out, they had made vector objects for the lettering, and filled it with a bmp at 300dpi. 3 bands of color, 300 dpi, and a handful of white boxes for the background, 300 dpi as well.